If you are a novice or even a moderate coin collector, you might not understand the importance of having certified coins. Sure, it is one more step to take when collecting your coins, but it is one that could be very important for your future as a collector and as an investor. There is an expense associated with having your coins sent off to be graded and certified, but one that could well pay off in the long run for a number of reasons.
Once you have sent the coin off to be certified, the company doing the certifying will take steps to protect your coin so it does not get damaged. They don’t want the value to change, because they have just spent time grading it and placing the value on that coin. After the coins are done being tested, they can be wrapped and sealed for protection. The coin is placed inside a clear plastic display case, with a label under the coin stating its name and the grade, and sometimes even the certification number (depending on the company). This plastic keeps the coin from getting dirty, scratched or from anything else that could happen to it and destroy it.
Once your coins all have a value, it is easier to get an insurance policy on them. The coins are all labeled with a specific value, so the insurance adjuster knows exactly how much they are insuring. Depending on what the value of your coin or the collection is will tell you if you need an additional rider on a homeowner’s policy or if a separate policy just for the coins is needed. You will want insurance on the coins in the unfortunate event of a robbery or natural disaster that could affect the coins. If your coin is certified, it might also help identify the coin if someone tries to sell it so you can recover it.
Once you have certified coins, you can assume an absolute value for that coin or even a collection as a whole if you have every coin certified. If you are in to coin collecting for investment purposes, you immediately know the worth. The complete worth might not mean as much to you if you are a collector who does this only for hobby purposes, but it is still important. You can use the value for insurance purposes or if you ever need to for collateral on a loan.